MEDAC confident SMEs can contribute 50% to GDP by 2030

KUALA LUMPUR (Nov 23): The Ministry of Entrepreneur Development and Cooperatives (MEDAC) is confident the target of 50% contribution of small and medium enterprises (SMEs) to the gross domestic product (GDP) under the National Entrepreneurship Policy (NEP) can be achieved by 2030.

Its Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said currently, SMEs contribute 38% to the GDP.

“The NEP was drafted in 2019, at that time, the question of Covid-19 did not exist yet, and when Covid-19 hit the country, MEDAC strengthened its resolve to achieve that goal. I am confident that within 10 years, we can achieve the set target through cooperation with other ministries,” he told reporters here today.

He said the confidence was also based on the 82,555 new businesses that had registered with the Companies Commission of Malaysia from April 1 to July 19, 2020.

The NEP, launched on July 11, 2019, is a guide to provide a holistic framework or ecosystem for rapid development of entrepreneurship in Malaysia.

Apart from that, MEDAC has also targeted the 14,625 cooperatives nationwide to contribute up to RM100 billion in 2030 to the GDP compared with the current RM40 billion, through the Cooperative Transformation 2020, which has been approved by the government over the last two weeks.

“Through the Cooperative Transformation 2020, we want 80% of the cooperative members who are currently under the B40 category to be able to change to the M40 or better, with the benefits to be shared together,” he said.

Meanwhile, Wan Junaidi also hoped that Budget 2021 tabled on Nov 6 would be approved, as there are more than 900,000 entrepreneurs comprising SMEs and micro entrepreneurs who need help, so they can continue to be competitive and viable in today’s challenging situation.

“Some 48% of SMEs provide employment opportunities to Malaysians, and during the Covid-19 pandemic, their businesses are affected. Hopefully, the funding allocation provided by the government in Budget 2021, can help to sustain their businesses,” he said.

Source: TheEdgeMarkets